ECONOMIC AND MANAGEMENT SCIENCES END-OF-YEAR …

NOV 2015 – GR.8 EMS FINAL EXAMINATION Page 1

GENERAL EDUCATION AND TRAINING

DURATION: 2 HOURS MARKS: 150

NAME OF LEARNER: ________________________________ SCHOOL: _________________________________ GRADE:_____________

MARK DISTRIBUTION

SECTION A SECTION B SECTION C SECTION D TOTAL

40 30 50 30 150

ECONOMIC AND MANAGEMENT SCIENCES

END-OF-YEAR EXAMINATION

NOVEMBER 2015

GRADE 8

NO. OF PAGES: 11 (Answer on the spaces provided in the question paper)


ECONOMIC AND MANAGEMENT SCIENCES END-OF-YEAR EXAM

GRADE: 8 NOVEMBER 2015 TIME: 2 HOURS MARKS: 150 INSTRUCTIONS 1. Answer ALL the Questions on the spaces provided on the question paper.

2. Write neatly and legibly.

SECTION A QUESTION 1

Say whether the following statements are TRUE or FALSE.

STATEMENT ANSWER 1.1 Democratic leadership style is also called “participatory

style”.

1.2 An autocratic manager has a “do as you please” attitude.

1.3 Controlling is a process of driving a business towards achieving its goals by telling people exactly what to do and to encourage them.

1.4 Top management is responsible for making long term strategic planning decisions in the business.

1.5 A laissez fair leadership style works well when employees are very experienced and trustworthy.

(10) QUESTION 2

Match the description in COLUMN A with the correct concept in COLUMN B. Write only the correct LETTER next to the number on the space provided. DESCRIPTION (COLUMN A) CONCEPT

(COLUMN B) ANSWER

2.1 It has founding statement. A Sole Trader 2.2 It publishes its financial statements. B Partnership 2.3 Quick decisions can be easily made. C Close Corporation 2.4 Its name ends with PTY (LTD). D Public Company 2.5 Owners are jointly and severally liable for

debts. E Private Company

(5)


QUESTION 3

Various options are given as possible answers to each question. Choose the correct answer and circle the correct answer on the question paper. 3.1 Which Law ensures that there is investment in education and training of workers?

A. The Employment Equity Act B. The Labour Relations Act C. The Skills Development Act D. The Basic Conditions of Employment Act

(2) 3.2 The law that sets the minimum employment standards for employers and

employees is ………..

A. Basic Conditions of Employment Act B. Labour Relations Act C. Employment Equity Act. D. Skills Development Act.

. (2) 3.3 Dissatisfaction, injustice and unfairness experienced by an employee at work is

called ……… .

A. dispute resolution B. grievance C. equity D. discrimination

(2) 3.4 The law that protects workers against unfair discrimination :

A. Basic Conditions of Employment Act B. Labour Relations Act C. Employment Equity Act. D. Skills Development Act.

. (2) 3.5 The law that regulates the relationship between employer and employees in the

workplace is ………….

A. Skills Development Act B. Employment Equity Act C. Basic Conditions of Employment Act D. Labour Relations Act

(2) (10)


QUESTION 4 Choose the correct word in brackets and underline the correct answer. 4.1 The source document for money received in the Cash Receipts Journal is the

(duplicate receipt/ original receipt). (2) 4.2 The General Ledger is balanced or totaled at the end of the (day/month). (2) 4.3 When the business pays for advertising, (income/expenses) account

(increase/decrease). (4) 4.4 Capital account has a (debit/credit) balance and falls under (nominal/balance

sheet) section in the General Ledger. (4) 4.5 When the owner buys flowers for his wife using a business cheque we call it

(donations/drawings). (2) 4.6 Income received from services rendered increases (assets/liabilities). (1)

(15). TOTAL SECTION A: 40 SECTION B: ECONOMY QUESTION 5.1 Read the following case study and answer the question that follows National budget The national budget is the Government‟s budget. It is drawn up every year to plan how much money the government expects to earn during the year, and how they plan to spend their money. The government uses the national budget to try and achieve its goal, in particular to influence economic growth and to even out economic inequalities in the country. The government provides social grants to those citizens who are unable to support themselves. The government‟s fiscal year runs from 1 April of one year to 31 March of the next year. The budget is presented in parliament by the Minister of Finance in February every year.

5.1.1 Define the term “national budget”. (2)


5.1.2 Identify the government department responsible for drawing up the budget? (2) 5.1.3 Define the term “fiscal policy”. (2) 5.1.4 Give (2) TWO economic objectives of the government. (4) (10) QUESTION 5.2 Standard of living Standard of living is the level of wealth, comfort and material goods that the people in the country have. Inequality and poverty indicates that people have different standards of living. 5.2.1 Compare a rural and modern society. (8) RURAL SOCIETY MODERN SOCIETY

A situation whereby people are willing and able to work, are looking for a job but are unable to find a job, is called unemployment. Some statistics say that 72% of the unemployed are between the ages of 18 and 34 years old. It has been suggested that unemployed youth be given a monthly allowance.


5.2.2 Do you agree with the unemployment allowance for the youth? Motivate your answer. (5) 5.2.3 Briefly explain how paper and plastic can be used productively to promote a healthy environment. (2) (15) QUESTION 5.3 Markets 5.3.1 Define the term “financial markets” (2) 5.3.2 When you go to a shop and buy a radio, which market is involved? Why? (3) (5)

TOTAL SECTION B: 30


SECTION C: FINANCIAL LITERACY QUESTION 6

6.1 Which( 2) TWO accounts will be affected when the business pays cash for . advertising? (4) 6.2 Refer to your answer in 6.1 and indicate which account will be debited. (2) 6.3 Explain the concept of „double entry system’ in the General Ledger. (2) 6.4 Differentiate between fixed assets and current assets. (4) 6.5 Why do we have “Sundry Accounts” column in the Cash Journals? (1) (13)


QUESTION 7.1 Record the following transactions in the Cash Receipts and Cash Payments Journal of Mabhena Plumber‟s for October 2014. (18) Day Transactions: 1 Thabo Mabhena increased his capital contribution by depositing R50 000

directly into the current bank account of his business. Issued receipt no 001. Purchased a cash register for the office from Office Nationals, R5 300. Issued

cheque no 001 for the amount. 4 The business received money for services rendered and the cash register total

for the day was R3 250 Thabo received a donation from a close friend Thato Mothusi, to support his

business, R1 200. Issued a receipt for the amount. 6 Issued one cheque to purchase a second hand delivery vehicle from Mega

motors; R80 000 and petrol for R570. 9 Cash a cheque for the week‟s wages, R1 500 14 According to the bank statement from Nedbank, the business received an

amount of R210 for rent from a tenant Maria Mokoena. 16 Paid for pens and cash books bought from City Stationers; R 360 19 Cashed a cheque for the week‟s wages R1 500 22 Bought more pipes and fitting from Builders Warehouse to complete another

contract, R1 800. QUESTION 7.2 Show the effect of the following transactions of Lehoko Plumbers on the accounting equation. Write down your answers on the table provided. Transactions:

7.1 Mr Lehoko deposited R35 000 directly into the business bank account as capital contribution. Receipt 001 issued.

7.2 Bought equipment for cash R2 355. 7.3 Received R1 700 for services rendered. 7.4 Received an amount of R1400 from Ms Roots a tenant for rent.

Accounting Equation: Example: Paid telephone account by cheque no. 234, R250 No. Assets = Owners’ Equity + Liabilities E.g. - R250 - R250 7.1 7.2 7.3 7.4 (8)

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QUESTIO

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NAM

E OF LEARNER: ____________________________

CASH RECEIPTS JOURNAL O

F MABHENA PLUM

BERS - OCTO

BER 2014 CRJ3

Doc no.

Day Details

Fol. Analysis of

receipts Bank

Current Incom

e Sundry accounts

Amount

Fol. Details

(9)

CASH PAYMENTS JO

URNAL OF M

ABHENA PLUMBERS - O

CTOBER 2014

CPJ3 Doc no.

Day NAM

E OF

PAYEE Fol.

BANK W

AGES

STATION

ERY Sundry accounts

Amount

Fol. Details

(9)


QUESTION 7.3 Use the following balances/totals taken from the books of AA Electricians and prepare the Trial Balance on 30 November 2014: Capital 32 700 Current income 43 500 Bank (dr) 2700 Rent paid 22 000 Equipment 12 000 Stationery 5 000 Vehicle 45 000 Drawings 12 000 Loan: CC Bank 22 700 Interest expense 200 TRIAL BALANCE OF AA ELECTRICIAN ON 30 NOVEMBER 2014 FOL DEBIT CREDIT (11)

TOTAL SECTION C: 50 SECTION D: ENTREPRENEURSHIP QUESTION 8 8.1 Name and explain the (3)THREE management styles. (9)

MANAGEMENT STYLE EXPLAINATION


8.2 Give a definition of each of the following management tasks. (6)

MANAGEMENT TASK DEFINITION Planning

Organizing

Leading

8.3 Fill in the information on the table for each form of ownership. (6)

SOLE TRADER PARTNERSHIP Number of owners To whom does the

profit belong?

8.4 Draw a pyramid diagram that represents the (3) THREE levels of management and give one responsibility for each. (9)

TOTAL SECTION D: 30 GRAND TOTAL: 150

NOV 2015 – GR. 8 EMS FINAL EXAM: MEMORANDUM Page 1

GENERAL EDUCATION AND TRAINING

DURATION: 2 HOURS MARKS: 150

NAME OF LEARNER: ________________________________ SCHOOL: _________________________________ GRADE:_____________

MARK DISTRIBUTION

SECTION A SECTION B SECTION C SECTION D TOTAL

40 30 50 30 150

ECONOMIC AND MANAGEMENT SCIENCES

END-OF-YEAR EXAMINATION MEMORANDUM

NOVEMBER 2015

GRADE 8

NO. OF PAGES: 09


ECONOMIC AND MANAGEMENT SCIENCES END-OF-YEAR EXAM

MEMORANDUM GRADE: 8 NOVEMBER 2015 TIME: 2 HOURS MARKS: 150 SECTION A QUESTION 1

1.1 True √√

1.2 False √√

1.3 False √√

1.4 True √√

1.5 True √√ (10) QUESTION 2

2.1 C √ 2.2 D √ 2.3 A √ 2.4 E √ 2.5 B √

(5) QUESTION 3

3.1 C √√ 3.2 A √√ 3.3 B √√ 3.4 C √√ 3.5 D √√ (10) QUESTION 4 4.1 Duplicate receipt √√ 4.2 Month √√ 4.3 Expenses √√ increase √√ 4.4 Credit √√ balance sheet √√ 4.5 Drawings √√ 4.6 Assets √ (15) TOTAL SECTION A: 40


SECTION B: ECONOMY QUESTION 5.1 5.1.1 “national budget”. (2) A plan of how the government plan to use its expected income (through taxes) to pay for projected expenditure on education, social welfare, health, security, etc. √√ 5.1.2 Government department responsible for drawing up the budget. (2) Department of Finance. √√ 5.1.3 “fiscal policy”. (2) Any action taken by the government to manage or influence the economy through taxation and or government spending by using the national budget. √√ 5.1.4 The 2 two economic objectives of the government. (4) Reduce unemployment, Control inflation, Stimulate economic growth √√ Redress past unequal service deliver √√ ANY 2X2=4 (10) QUESTION 5.2 Standard of living 5.2.1 Comparison of a rural and modern society. (8) RURAL SOCIETY MODERN SOCIETY Rural societies are normal found in rural areas outside cities and towns. √√

Modern societies are found in urban areas, cities and towns. √√

Employment opportunities are scarce and depend on subsistence farming to earn a living. √√

Employment is competitive and people have to work to earn an income. √√

They use less technology and their main economic activities are in the primary sector. ANY 2 X2 = 4

They use technology and are more industrialized. ANY 2 X2 = 4

5.2.2 Unemployment allowance for the youth? (5) Yes, √ It will assist them financially and be able to buy basic needs like toiletries. √√ They will be able to use the allowance as transport to look for jobs and also to send applications for the jobs. √√ No, √ It will make them dependent of the government and not encourage them to


acquire skills that will assist them to get jobs. √√ Government can rather allocate those funds for job creation. √√ NB: LEARNERS MUST GIVE THEIR OPINION AND SUPPORT THIS WITH LOGICAL, VALID REASONS. 5.2.3 Productive use of paper and plastic to promote a healthy environment. (2) Using recycled paper and plastic for packaging. √√ Encourage reuse of plastic by allowing customers to bring their plastics for packaging. ANY RELEVANT ANSWER. (15) QUESTION 5.3 Markets 5.3.1 “financial markets” (2) Are markets where people and companies trade financial assets such as stocks, shares etc. √√ 5.3.2 Market involved when buying a radio from the shop and the reason (3) Goods markets, √ radio is a product that you can see and touch. √√ (5)

TOTAL SECTION B: 30

SECTION C: FINANCIAL LITERACY QUESTION 6 6.1 The 2 two accounts that will be affected when the business pays cash for . advertising (4) Bank √√ and Advertising √√ 6.2 Account to be debited from the answer in 6.1. (2) Advertising √√ 6.3 The concept of „double entry system’ in the General Ledger. (2) It refers to the accounting system that is applied in every transaction where one account must be debited and another credited. What you do on the right- hand side of the ledger account, must also be done on the left -hand side of a corresponding ledger account. √√ ANY 1 FROM THE ABOVE


6.4 Difference between fixed assets and current assets. (4) Fixed Asset are possessions of a business available to be used for more than a year e.g. land and buildings, vehicles and equipment. √√ Current Assets are possessions of a business that can be converted into cash within a year. These assets are temporary in nature, e.g. trading stock, debtors, bank etc. √√ 6.5 The reason for having “Sundry Accounts” column in the Cash Journals? (1) To record all transaction accounts which do not have columns in the Cash Journals.√ (13) QUESTION 7.2 Accounting Equation: No Assets = Owners’ Equity + Liabilities Eg - 250 - 250 7.1 +35 000 √ +35 000 √ 7.2 -2 355 √

+2 355 √

7.3 +1 700 √ +1 700 √ 7.4 +1 400 √ +1 400 √ (8)


QUESTIO

N 7.1

CASH RECEIPTS JOURNAL O

F MABHENA PLUM

BERS - OCTO

BER 2014 CRJ3

Doc no.

Day Details

Fol. Analysis of

receipts Bank

Current Incom

e Sundry accounts

Amount

Fol. Details

001 1

Thabo Mabhena

50 000

50 000√

Capital √

CR

R

4 S

ervices Rendered

3 250

3 250

002

Thato Muthusi

1 200

4 450√√

1 200√

Donations

received √ B

/S√ 14

Maria M

okoena

210

210√

R

ent Income √

54 660

3 250

51 410

(9)

CASH PAYMENTS JO

URNAL OF M

ABHENA PLUMBERS - O

CTOBER 2014

CPJ3 Doc no.

Day NAM

E OF

PAYEE Fol.

BANK W

AGES

VEHICLES Sundry accounts

Amount

Fol. Details

001 1

Office N

ationals

5 300

5 300√

E

quipment √

002 6

Mega M

otors

80 570√

80 000

570√

Fuel √

003 9

Cash

1500

1 500√

004 16

City Stationers

360

360

Stationery √

005 19

Cash

1500

1500√

006 22

Builders

Warehouse

1 800

1800

Material C

osts √

91 030

3 000

80 000

8 030

(9)


QUESTION 7.3 TRIAL BALANCE OF AA ELECTRICIAN ON 30 NOVEMBER 2014 BALANCE SHEET ACCOUNTS SECTION:√ FOL DEBIT CREDIT Capital B1 32 700 00√ Bank B2 2 700 Equipment B3 12 000 00 Vehicle B4 45 000 00 Drawings B5 12 000 00 Loan B6 22 700 00√ NOMINAL ACCOUNTS SECTION:√ Current income N1 43 500 00√ Rent paid N2 22 000 00 Stationery N3 5 000 00 Interest expenses N4 200 00√ √ 98 900 00√√ 98 900 00√√ (11)

TOTAL SECTION C: 50 SECTION D: ENTREPRENEURSHIP QUESTION 8 8.1 3 three management styles. (9)

MANAGEMENT STYLE EXPLAINATION Autocratic style √

Style in which managers make all decisions on their own, without consulting their workers √√

Democratic style √

style where leaders discuss problems with the workers and ask their input, before they make their final decisions. √√

Laissez-faire √

Allows staff to work on their own without any management or interference. Laissez-faire leaders have a “do as you please” attitude √√


8.2 Management tasks. (6)

MANAGEMENT TASK DEFINITION Planning

Working out the way something must be done by having clear goals/objectives/deciding what you want to make happen and how it must happen. √√

Organizing

Working out step by step, the order in which things are done/ deciding who will do what activity and also about how to use the available resources. √√

Leading

A process of driving a business towards achieving its goals by telling people exactly what to do and to encourage them. √√

8.2 Forms of ownership. (6)

SOLE TRADER PARTNERSHIP Number of owners One √ Between 2-20 √ To whom does the

profit belong? To the owner √√ Shared amongst the partners

√√

8.4 Pyramid diagram that represents the 3 three levels of management and give one responsibility for each. (9)


TOP MANAGEMENT Responsible for making long term strategic plans and decisions in the business. √√

TOTAL SECTION D: 30

GRAND TOTAL: 150

TOP MANAGEM

ENENT√

(IT

MIDDLE MANAGEMENT √

It is responsible for carrying out the long-term strategic plans, policies and decisions

made by Top management √√

LOWER MANAGEMENT √

It is responsible for the daily activities and tasks within their own particular section of the business. √√


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ECONOMIC AND MANAGEMENT SCIENCES END-OF-YEAR …